BoJ policymakers stress the need to maintain easy policy on weak inflation By Reuters – News Couple

BoJ policymakers stress the need to maintain easy policy on weak inflation By Reuters

© Reuters. FILE PHOTO: A man wearing a protective mask walks past the headquarters of the Bank of Japan amid the outbreak of the coronavirus disease (COVID-19) in Tokyo, Japan, May 22, 2020.

by Leika Kihara

TOKYO (Reuters) – A summary of views from their October meeting showed on Monday that policy makers at the Bank of Japan see the need to maintain very easy policy as inflation rises modestly and wage growth remains subdued.

The nine-member board also sounded bullish on the yen’s recent declines, with one member saying they reflect differences in inflation and monetary policy attitudes between Japan and other countries.

Supply constraints and rising global commodity costs have pushed up inflation around the world, prompting some central banks to raise interest rates or consider withdrawing stimulus. basel-stadt dating heute

While rising energy and food costs drive up prices in Japan, inflation remains well below the Bank of Japan’s 2% target as weak consumption discourages companies from passing on higher costs to households. singletreff bs

“Monetary policy in Japan will be normalized when the target rate is achieved in a stable manner regardless of policy developments in other economies,” the summary quoted one member as saying. “Given that the target was not met, there is absolutely no reason to adjust monetary easing.”

The summary showed that some BOJ members cited signs that inflationary pressures are building in Japan as the economy benefits from the lifting of the state of emergency on September 30th.

The summary showed that the Bank of Japan’s board of directors also discussed recent declines in the yen’s exchange rate, with one member saying the impact could vary depending on company size and sector.

At the October 27-28 meeting, the Bank of Japan kept policy steady and maintained its view that the economy is heading for a moderate recovery as the impact of the COVID-19 pandemic begins to wane. partnervermittlung aus lucerne

The central bank is expected to decide as soon as its next meeting in December whether to extend the March 2022 deadline for pandemic relief financing programmes.

The summary showed that many members cited improvements in corporate finance and the distortion that BoJ corporate bond purchases could cause in the markets, a signal that some at the BoJ may have become more open to ending some programs.

“The impact of COVID-19 on corporate financial positions is becoming limited to industries facing weak sales as well as small and medium-sized businesses,” said one member.

“The Bank of Japan will continue to examine relevant data, such as the December Tankan survey, to see if improvements in corporate finance will be observed broadly.”

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